Facilitating trade growth and

optimising operations at Port Hedland

Port Hedland - Historical trade growth

• 2012 -13 throughput 288.4Mt (280.2Mt iron ore)

forecasting 340+Mt in 2013 -14 (half year = 173Mt)

• Average 20% annual growth 2009 - 2014

• 4140 vessel movements in 2012 -13 forecasting

4800+ movements in 2013 -14

• WA produces over one quarter of the world’s iron

ore (26% in 2012). WA export volumes account for

42% of global shipments once domestic use is taken

out

• Port Hedland exports 24% of ALL global iron ore

exported by sea forecasting approx. 27% in 2014

Port Hedland - Iron ore export volumes

-

100

200

300

400

500

600

All of WA

Port Hedland

‘95 ‘96 ‘97 ‘98 ‘99 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ’08 ’09 ‘10 ’11 ‘12 ‘13 ’14 ‘15 ‘16 ‘17

Million

tonnes

Financial Year

Port Hedland - Economic importance

• WA mining royalties forecast for 2013 -14 =

$5.8B $3B derived through PH exports

• Total value of exports for 2014 FY = $44B *

* Iron ore price at $125/tonne

Port Hedland – Operational performance

Monthly throughput trending upwards - reached 1M tonnes per day by Dec 2013

0

5

10

15

20

25

30

35

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

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-12

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-12

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-12

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13

Feb

-13

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-13

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-13

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-13

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13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Monthly throughput

Million

tonnes

Port Hedland – Operational performance

Progressive growth of tonnes on a tide

Single Tide Milestones:

• 26 June 2009 (5 cape size) - 841,062 t

• 4 June 2012 (5 cape size) - 947,775 t

• 18 June 2012 (6 cape size) - 1,040,062 t

• 15 January 2013 (6 cape size) - 1,059,740 t

• 8 March 2013 (5 cape size) - 1,007,164t

• 25 October 2013 (5 cape, 1 panamax) - 1,062,515t

• 5 November 2013 (6 cape size) - 1,056,597t

• 17 November 2013 (6 cape size) - 1,083,210t

• 24 November 2013 (6 cape size) - 1,065,483t

• 17 December 2013 (6 cape size) - 1,052, 446t

Port Hedland – Operational performance

Facilitating larger vessels

• Fleet profile moving to larger vessels WozMax/ PH

Max/ PSU Series/ N Series

2009/10: 10% of fleet > 200k DWT, nil > 250k DWT

2013/14: 33% of fleet > 200k DWT, 6% > 250k DWT

• Recent DWT milestones at Port Hedland:

4 October 2012 - Daniel N (297,359t)

15 November 2012 - Abigail N (297,430t)

5 November 2013 - Wugang Haoyun (299,385 t)

17 December 2013 - CSB Talent (315,041t)

1 February 2014 - CSB Glory (315,063t)

Port Hedland – Operational performance

Increased vessel sailing tonnages

• Largest single iron ore shipments

15 Nov 2011 - Wugang Innovation (247,906 t)

15 Nov 2012 - Abigail N (254,010 t)

5 Dec 2013 - Hugo N (263,962 t)

• Maximum sailing draft

Increased from 19.05m (Abigail N, 15 Nov 2012) to 19.65m

(Hugo N, 5 Dec 2013)

Operational enhancements at Port Hedland

• Provides for minimum 90cm clearance

• Upgrades to DUKC system (Series V)

Dynamic Under Keel Clearance System

Tidal Range: 7m Current: 2-3 knots Depths: 14.8m (IH), 15m -16.6m (channel)

• Targeted dredge campaign:

Removal of siltation allowance

High spot dredging in Inner Harbour

Revision of tidal model

Net average benefit = 71cm

Specialised Dredging Campaign

Operational enhancements at Port Hedland

• Increased departure window from 3.5 hours to 4.5

hours - with 30min gaps

• Capacity to increase number of vessel departures

from 6 to 8

Increased tidal departure window as a result of Port enhancements

Increased towage requirements and provisions

• On departure, four tugs escort to Hunt Point, three tugs

escort to Beacon No. 30/31

• Channel width at Hunt Point = 183m

• Nineteen tugs required to manage ≥ 460Mtpa

• In 2009: 10 tugs (stern-drive) 2014: 15-16 tugs (8-9 rotor tugs)

Future PHPA Initiatives

• Channel escape areas - shorter departure windows

(30mins 20mins)

• 400m survey outside channel (complete)

• Real time data feed to Portable Pilot Units (complete)

• Improved tidal network & DUKC Series V (complete)

• Significantly improved channel transit management

Channel Enhancements

Utah Facility - Stockyard 1

Utah Multi User Facility

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb

-13

Mar

-13

Apr

-13

May

-13

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13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Utah Facility monthly throughput

ton

nes

Utah Multi User Facility

Optimising out-loading performance:

• Cavotec mooring system - optimised berthing

times

• Stockyard 2 developed - increased throughput

• In 2011 the average GLR was 2500 tph, currently

achieving GLR’s of 3,500 tph.

Increase in product haulage rate:

• 13 July 2013 - 448 quads in 24 hours

• 26 Oct 2013 - 500 quads in 24 hours

• 31st November - 626 quads in 24 hours

Ports Review – Pilbara Ports Authority

Operational Benefits:

• Single entity oversight of all shipping

across the Pilbara region

• Leverage operational capabilities, e.g.

Dredge Manager, and engineering

oversight

Development Benefits:

• Single point of contact for proponents

• Streamlining of processes, e.g.

environmental and DA processes

Strategic Objectives

Consolidates all ports across (11 in total) the Pilbara region

Ports Review – Pilbara Ports Authority

Port Hedland

Dampier